Non-Custodial Escrow Wallet

Pakt's Non-Custodial Escrow Wallet (NCEW) serves as the first on-chain "blockchain Lego" from which Pakt's OS for web3 will be built.

As the name indicates, this is an Escrow Wallet not in the custody of any centralized entity. Rather, it is a single-use, on-chain wallet spun up for each smart contracted connection occurring on Pakt.

To reassert, the Non-Custodial aspect of this escrow wallet ensures that no party - not Pakt, not a Chainsite operator/owner, nor any users - can access the funds once deposited into the wallet. The only way for funds to be released is for the preset, hard-coded conditions to be met. Currently, those conditions are:

• The completion of all the deliverables in the collection attached to the wallet

• The cancellation of the collection by the involved parties

• The verdict of an Issue Resolution

Put simply: your funds will not be stolen, defrauded, rehypothecated, or otherwise manipulated once deposited into one of Pakt's Non-Custodial Escrow Wallets.

When an NCEW is created, the key to unlock and release the deposited funds is split into three via Pakt's Key Management System utilizing Shamir's Secret Sharing, an industry-leading Multi-Party Compute solution. This approach boosts Pakt's already significant security to better protect user funds.

In the following flowchart:

• A collection is created (to see how to review Pakt's Global Smart Contract Tool)

• This collection requires payment, which triggers the creation of the Non-Custodial Escrow Wallet

• Once the Collection's requirements are satisfied, the three pieces of the key are reunited and the funds unlock from the NCEW to be sent to the recipient's on-chain wallet